Wages, government spending taxation, inflation : Neoliberal point of view.

[Mexicano]

According to neoliberal economic viewpoint, sources of inflation include the following events:
- An increase in government spending ( more money chasing too few goods)... I find this to be highly contested it seems to be a sufficient condition but not a necessary one.
- General increase in wages.
- Taxation. Ok , yes VAT taxes get directly transferred to the consumer income tax is a different matter , because there are strategies to cope with higher corporate taxes( expand the market, reduce costs, increase automation).

All these statements beg the question: how are average wages supposed to go up? It seems any disturbance in the status quo will result in inflation and yield a loss of purchasing power. Alas, we know for a fact that real wages do increase. So , what are the mechanics for real wage increments?

 

[shockedcanadian]

According to neoliberal economic viewpoint, sources of inflation include the following events:
- An increase in government spending ( more money chasing too few goods)... I find this to be highly contested it seems to be a sufficient condition but not a necessary one.
- General increase in wages.
- Taxation. Ok , yes VAT taxes get directly transferred to the consumer income tax is a different matter , because there are strategies to cope with higher corporate taxes( expand the market, reduce costs, increase automation).

All these statements beg the question: how are average wages supposed to go up? It seems any disturbance in the status quo will result in inflation and yield a loss of purchasing power. Alas, we know for a fact that real wages do increase. So , what are the mechanics for real wage increments?

You can apply any number of mixed economic systems as long as you have extensive civil liberties and accountability of government. If you fail in these aspects it is only a matter of time before your economy stalls and citizens stop trusting and start hoarding, or worse. The key to economic sccess is freedom, socially,.civilly and economicaly. I even researched it in my own time as a personal Data Science project with a few data variables I found.

 

[Mexicano]

You can apply any number of mixed economic systems as long as you have extensive civil liberties and accountability of government. If you fail in these aspects it is only a matter of time before your economy stalls and citizens stop trusting and start hoarding, or worse. The key to economic sccess is freedom, socially,.civilly and economicaly. I even researched it in my own time as a personal Data Science project with a few data variables I found.

Social and civil liberties are not related to economic development. Those are political aspects. Singapore, Taiwan, and South Korea have been successful dictatorships in the past. The same goes for China.

 

[Moonglow]

So , what are the mechanics for real wage increments?

Being wealthy helps